ZTE expects swing to profit for 2013

ZTE has revealed it expects to report a swing back to profit for 2013, attributing the result to tight cost controls and a focus on improving margins.

 

The company is forecasting a full-year profit of between 1.2 billion and 1.5 billion yuan ($198.3 million-$247.8 million). This compares to a 2.84 billion yuan loss for 2012.

 

In a statement, the company said it had “exercised stringent control in expenses,... adopted tighter scrutiny of business that offer lower margins [and] strengthened management of cash flow and account receivables” during the year.

 

ZTE's recent announcement that it will create a dedicated mobile device unit and enterprise business group is also aimed at bringing greater stability to the two divisions and thus improving profitability, the company said.

 

ZTE expects to pursue further reforms in 2014, including intensifying its focus on its core operations, implementing more efficiency improvements and initiatives to establish ZTE as a global smartphone brand.

 

“In the Operator Solutions division, ZTE will leverage its leadership of the 4G market in China to grow its operations internationally, and target significant breakthroughs in the development of 4G equipment, mobile devices and chipsets,” ZTE's statement reads.